dba Telecom Acquires VoIP Technology and Altel Shares
dba Telecom Corporation
For Immediate Release
Trading Symbol: DBA
Canadian Venture Exchange
dba Telecom Acquires VoIP Technology and Altel Shares
January 17, 2001; North Vancouver, B.C. – dba Telecom Corporation (CDNX: DBA) announces that it has acquired Voice over Internet Protocol (VoIP) technology from Altel Inc, of Japan. Under the terms of the agreement, dba Telecom gains a worldwide, royalty-free license to Altel’s VoIP technology including its Gateway and Router technologies. dba Telecom also acquires a three year license for the marketing and distribution rights to the products (excluding Japan), and a 5.5% equity interest in Altel, a privately held Telecom developer.
The companies will jointly develop a series of IP products that integrate dba Telecom’s SmarTalk telephones with Altel’s technology. Altel is a leader in the VoIP field, having demonstrated its first VoIP technology at Telecom 95 in Geneva. The technology that Altel developed has been praised for its interoperability with leading network providers. Altel owns the rights to all of its technology, resulting in higher sales margins and has among the most innovative and widely compatible VoIP telephones, gateways and routers available.
dba Telecom’s acquisition of these assets is part of a private placement of approximately C$4 million by Altel. Kansai Electric Power Co., Inc. <http://www.kepco.co.jp/indexe.htm >, a major utility company in Japan with 12 million subscribers and annual revenues of US $24 billion, purchased almost 70% of the placement and dba Telecom has purchased 8%. In addition, dba Telecom has purchased 200 warrants which allow dba Telecom to acquire Altel shares at a substantial discount to market. On a fully diluted basis, dba Telecom will hold 5.5% of Altel.
Garry Hines, President & CEO of dba Telecom said, "VoIP is the future of telephony services. This acquisition places dba Telecom at the forefront of this emerging technology and strengthens our position as a leading provider of telephony solutions. Altel is a proven developer of VoIP technology, and has an enviable and impressive track record. Besides acquiring a leading VoIP technology at an excellent price, dba Telecom gains access to the difficult to penetrate Japanese market for our ST telephones. Compared with the valuations that VoIP technology commands on global markets, this agreement could provide dba Telecom shareholders with excellent returns in the future.”
The market for VoIP telephones is in its initial stages and is expected to see annual growth rates in excess of 200%. Voice over Internet Protocol promises to provide low cost phone calls, unified messaging and the merger of data and voice infrastructures. Demand for the VoIP market is accelerating as network carriers deploy massive IP infrastructures and organizations look to converge voice and data traffic over a single network.
Payment for the Altel shares, warrants and the license to use their VoIP technology is through the issue of 3,788,137 dba Telecom shares from treasury at a deemed price of $0.16 per share plus the granting of distribution rights in Japan of dba Telecom’s products to Altel for a period of three years. The transaction is subject to the approval of the Canadian Venture Exchange.
Altel Inc. is a leading provider of Voice over IP solutions. Founded in 1991, it is a privately held subsidiary of ABIT Corporation and is controlled by Mr. Takeo Hiyama. Altel currently manufactures its products, including gateways and routers, through its affiliated company, Advantage Century Telecommunication Corporation, < act-tel.com.tw > in Taiwan. Altel's current business plans include an IPO within 18 months.
Known internationally as “The SmarTalk Company,” dba Telecom designs, develops, and supplies a unique range of telecommunication solutions for the VoIP, Centrex, Computer Telephony and Communication Server markets. dba Telecom has sales and support offices in Canada and the U.S. with engineering, marketing and administration located in Vancouver. The Company’s shares are traded on the Canadian Venture Exchange under the symbol DBA.
The CDNX has neither approved nor disapproved the information contained herein.
Contact:
dba Telecom Corporation
Tel: (604) 903-3900; Fax: (604) 985-4128
Email: invest@dbatele.com
The statements contained in this news release that are not historical facts are forward looking statements. Such statements are based on management’s estimates, assumptions, and projections using available information. The Company cautions that actual financial results could differ materially from the current expectations for a number of factors. |
